Keating: Riding the waves of the music biz

The RIAA has reported, “Since peer-to-peer (p2p) file-sharing site Napster emerged in 1999, music sales in the U.S. have dropped 53 percent,” with some 30 million songs illegally downloaded from 2004 to 2009 alone, and “only 37 percent of music acquired by U.S. consumers in 2009” being paid for. The RIAA also points out that the steady decline in music sales over the past decade-plus correlates with a steady fall in employment among musical groups and artists, based on U.S. Bureau of Labor Statistics data. Quite simply, lost revenue, due to theft, means a smaller industry and reduced resources to invest in new artists.

On the other side of the coin, broadband and digital technologies have provided benefits for consumers and the music industry, including services such as iTunes that allow the immediate purchase, download and consumption of music. Such digital sales have exploded in recent years, especially downloaded singles.

For good measure, broadband Internet, and assorted services and sites, like YouTube, have allowed musicians to get their music out through new and varied avenues, without the need for backing from a recording company.

So, the music industry of the past decade has been altered in dramatic fashion, requiring new thinking and new business models in the face of technological upheaval and dramatic declines in overall revenues.

It’s worth listening to “Isn’t It Time” on the Beach Boys’ new album. It’s an autobiographical take on the band, looking back on great summers and declaring that it’s time to do it again. And perhaps the Beach Boys speak to the music business when harmonizing: “The world has changed and yet the game is still the same.”

The ultimate game is still about the music. But music industry entrepreneurs and executives still face the tough challenge of reversing large declines in sales. Consumers need to understand that if they don’t pay for good music, such as from the Beach Boys, they’ll simply get less good music.

One comment

Ray Keating raises an important issue where many business owners and people who rightfully earn a living from various forms of music are losing out in large measure because of failure to enforce Federal copyright laws. Once again, what is the sense of having all of these laws—if government agencies and trade/industry groups fail to exercise proper enforcement??

Mr. Keating does not even mention the jukebox industry in his article—which has been getting killed with all forms of illegal play music. For example, The Amusement And Music Owners Association of New York has approached the Recording Industry Association of America a number of times about this, offering specific violations and examples. From our perspective, the RIAA may talk a good game—but they do nearly nothing to protect the interests of our law-abiding, responsible, ethical members who are paying license and copyright fees for music. The failure of the RIAA and government agencies like the Federal Bureau of Investigation to pro-actively monitor this illegal activity and carry out enforcement puts many of our members at a severe, competitive disadvantage with respect to their business operations. The message that the RIAA and its members, and the FBI, convey is that: CRIME PAYS!

We are entitled to a whole lot more than lip service or the problem is only going to grow worse. The record companies and their artists will be losing even more in their rightful revenues.

DANNY FRANK, EXECUTIVE DIRECTOR
THE AMUSEMENT AND MUSIC OWNERS ASSOCIATION OF NEW YORK, INC.DANNYFRANK@COMCAST.NET